answersLogoWhite

0

Backward linkages can be defined as "the growth of an industry leads to the growth of the industries that supply inputs to it". As in the case of cotton industry, growth of the textile industry may support the growth of the cotton industry, which will lead to higher incomes for cotton farmers and will create a greater demand for goods and services in the countryside

Forward linkages exist when the growth of an industry leads to the growth of other industries that uses its output as input. The final product of cotton goes to consumers either through retailers or through manufacturers who open up their own shops to directly sell to consumer, thereby minimising the role of retailers in the channel process. A company can minimize cost of production and can maximize revenue when both backward and forward linkages work together in effective way.

User Avatar

Wiki User

11y ago

What else can I help you with?

Continue Learning about Economics

Discuss what is meant by forward loading and backward loading?

pre planned discussions


What is the difference between the forward rate and the future rate in financial markets?

The forward rate is the agreed-upon rate for a future transaction that is set today, while the future rate is the expected rate for a future transaction that is not yet agreed upon.


What is the difference between swaps and forward contracts?

By Irfan Ullah (MS MAJU Islamabad)Difference between swap and future market:NoFuture contractSwap1Traded at exchangeNot2No counterpartyHaving counter party3Clearing house existNo4No riskRisk of the counter party exist5Marked to marketRarely marked to market6Mostly long term contractMostly short term7RegulatedUnregulated


What is the difference between a reverse auction and a forward auction?

A forward auction is the "ordinary auction" we are all used to today. In a forward auction, the buyer bids on the sellers item, and the prices of the item increases during the auction. On the other hand, a reverse auction switches the roles of the buyer and the seller. In a reverse auction, the sellers are competing for the buyers business, and the prices of the items the sellers are selling decrease during the auction.


What is forward premium How does the forward market help in reducing currency risk in international business?

The forward premium arises due to interest differentials between two currencies. In order that the two currencies have the same intrinsic values as they have today and avoid interest arbitrage, the premium/discount comes into effect.The forward rate includes the forwrd premium/discount and so the risk of spot market moving in the wrong way is minimised by entering into a forward contract.

Related Questions

Give you an examples of Backward and forward linkages in Entrepreneurship?

example of backward linkages


What is the difference of backward and forward linkages?

Froward Linkages - When one industry or sector produces the raw materials for another, this is referred to as the forward linkage. Forward movement of the activity Backward Linkages - Means that one industry has to depend upon another industry that is not directly related to it for services.


Forward and backward linkages?

backward linkages is when one industry or sector has to depend upon another industry that id not is not directly related to it for services and a forward linkages is when one industry or sector produces the raw materials for another


What are the examples of backward linkages and forward linkages?

Background linkages-Wooden pegs for looms/fertilizes. Product-Sinamay cloth Forward linkages-Place mat, Sewing machine, Dye. Ps: this is written on a chart.


Why is knowledge of forward and backward linkages in the research process important?

maa chuda painchoddd


What is the difference between forward difference and backward difference?

Given an infinitely convergent sequence pn with limit p, the forward difference is the measure of the difference between the current term and he next. The backward difference is the measure of the difference between the current term and the previous.i.e.forward difference: Δpn=pn+1 - pnbackward difference: ∇pn=pn - pn-1Also, note that since they are both expressed by pn, the forward difference is recognised by the use of a delta before the pn, and the backward difference by the use of a nabla.


What is the difference between forward slash and backward slash in c?

forward slash - division operator backward slash - special character (e.g. \n - newline) in C strings


Examples of forward linkages?

examples of forward linkages


What is Forward linkages in a daycare?

linkages


What is different between enter backward and enter forward event?

expain the ifference between enter backward and enter forward event?


What is the difference between backward linkage and forward linkage?

Backward linkages can be defined as "the growth of an industry leads to the growth of the industries that supply inputs to it". As in the case of cotton industry, growth of the textile industry may support the growth of the cotton industry, which will lead to higher incomes for cotton farmers and will create a greater demand for goods and services in the countryside Forward linkages exist when the growth of an industry leads to the growth of other industries that uses its output as input. The final product of cotton goes to consumers either through retailers or through manufacturers who open up their own shops to directly sell to consumer, thereby minimising the role of retailers in the channel process. A company can minimize cost of production and can maximize revenue when both backward and forward linkages work together in effective way.


Is it forward or backward two hour difference from US to Brazil?

it depends on where in brazil you go.